QE -> FED bought bonds, those who cashed out bought stocks, FED balance sheet expanded.
QT -> FED balance sheet shrank, bond price went down, liquidity dried up, corporate financing cost went up, stock market tanked.
The tranditional risk on/off, i.e.,stock up, bond down, or stock down , bond up, since introduction of QE, this relation was f**ked by FED. Both bond and stock went up before, now both decline simultaneously.
In fact you will see that bond , stock, housing, US Dollar purchasing power all go down and crash in the coming years. The 2008 crisis has not been resolved at all, debt grew multiple fold, the debt crisis get even bigger this time.
Such distortion and manipulation ends in a horrible disaster.
